PGS Refinancing Plan

At an extraordinary general meeting on December 14, PGS shareholders resolved to approve the private placement raising gross proceeds of approximately NOK 1.9 billion (approximately USD 225 million) and authorized a subsequent offering.

PGS has carried out a private placement of new ordinary shares for gross proceeds of approximately NOK 1.9 billion (~USD 225 million). The Company will now carry out a subsequent offering to existing eligible shareholders of approximately NOK 300 million (USD 35 million).

The prospectus is available here

The proceeds from the Private Placement will be used primarily to finance an inter-conditional exchange offer (the "Exchange Offer") for PGS' existing 7.375% Senior Notes due December 2018 (the "2018 Notes"). The Exchange Offer was launched together with the Private Placement and 94% of the holders accepted the Exchange Offer by 5 December 2016. The Exchange Offer will therefore be completed as planned on 20 December 2016.

In November 2016, the Company further agreed with the banks in the revolving credit facility syndicate to extend a portion of its revolving credit facility currently due 18 September 2018 (the "RCF") until 18 September 2020.

Upon completion of the Private Placement and the Exchange Offer, the RCF will be reduced from USD 500 million to USD 400 million. On 18 September 2018, the RCF will be further reduced to USD 350 million. Finally, the RCF refinancing includes covenant reset to retain flexibility of liquidity reserve out to 2020 and no change in security position for the RCF banks.

The approval by the extraordinary general meeting was the last condition in the refinancing plan which was launched on 22 November 2016, and it will now go forward as planned.

For more information see the Company's press releases below or at www.newsweb.no